Key facts
- Bitcoin surpassed $80,000, its highest level since mid-May.
- Global equity and bond markets showed stability despite US sanctions plans against Iran.
- Investors are anticipating earnings results from Nvidia.
- Defence stocks saw gains due to expectations of a prolonged conflict.
- The US Treasury Department announced sanctions plans but did not immediately impose penalties.
Global equity and bond markets found stability as investors processed U.S. plans for expanded sanctions against Iran and looked ahead to Nvidia's upcoming earnings report. U.S. Treasury Secretary Scott Bessent had warned countries to sever financial ties with Iran or face secondary sanctions, a move that had initially caused a modest pullback in oil prices and bond yields. However, the Treasury Department's decision to stop short of immediately imposing penalties provided some comfort to markets.
European shares opened higher, with defence stocks seeing gains on the prospect of a prolonged conflict. In the cryptocurrency market, Bitcoin surged past $80,000 for the first time since mid-May, extending a recent rally. Gold prices also remained elevated, though they saw a slight dip. Analysts are closely watching Nvidia's results, with expectations high for the chipmaker's revenue and earnings.
Wall Street futures indicated a fractional increase for major US indices. In Asia, broader market indices saw gains, though China's CSI300 blue-chip index declined, partly due to Alibaba's large share sale at a discount.